The Euro has strengthened against the Pound and hit a one-month high against the US Dollar after data showed that German manufacturing and services unexpectedly expanded in July.
According to Markit Economics the manufacturing index based on a survey of purchasing managers rose to 50.3 from 48.6 in June. Economists had been expecting 49.2. A similar gauge for the service sector increased to 52.5 from 50.4, compared to expectations of 50.7. A reading above the 50 mark indicates expansion, anything below is contraction. The PMI for the whole Eurozone also rose above 50.
Chris Williamson, chief economist at Markit, said the data suggests the Eurozone could start growing again soon:
“The best PMI reading for one-and-a-half years provides encouraging evidence to suggest that the euro area could – at long last – pull out of its recession in the third quarter.
The revival is being led by a broad-based upturn in manufacturing, where growth surged to a two-year high. Increased goods production was reported in Germany, France and across the rest of the region as a whole.
There are also promising signs of stabilisation in the service sector, which hints at some much–needed upturns in domestic demand. Rising service sector activity in Germany is being accompanied by slower rates of decline in France and elsewhere across the region.
Employment continues to fall, but even on the jobs front there is welcome news in that companies are cutting back on headcounts to a lesser extent than earlier in the year. The ECB in particular will be feeling much more confident in its expectation of the region returning to growth.”
Adding to signs that the Eurozone’s biggest economy is on track to make a good recovery was the Ifo institutes index of German business confidence which increased for a second consecutive month. Unemployment in the nation also declined for a second month in June.
One downer however, was the release of data showing that overseas exports and sales declined as Europe continues to struggle with its longest recession in over 60 years and as China, Germany’s third biggest trading partner, shows signs of a slowdown.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3236
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8620
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4379
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6643
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7554
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1610
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6954
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6006
(Correct as of 09:25 am GMT)